Not much happened in markets today but it was not too light a day for SOMEBODY to miss trashing silver and GOLD PRICES in London. Every day is a good day for that. The GOLD PRICE close down $3.50 at $1,281 after a $1,279.21 low. Silver closed Comex down 3.5 cents at 2127.2 after a 2122.7c low.

The SILVER PRICE is drawing close to that drop-dead uptrend line about 2100c, and gold toward the same about $1,260. Looks like lower prices are coming.

Let's suppose the Fed does taper, slow down its $85 billion a month asset purchases. What next? To whom will they sell all those assets on that bloated balance sheet? Answer: Nobody. They can't do it without overwhelming the market and deflating the money supply. Hence, they won't.

And like the first swallow at Capistrano, or the first rat running down the mooring line off the ship to the dock, I read today that British Columbia just floated a bond issue denominated in yuan to raise 2.5 bn yuan (about US$400 million).

One of the most frequently heard retorts whenever I doubt the dollar's future out loud is "But the dollar is the world's reserve currency! The dollar will always be the reserve currency!" I may not be crazy after all. By the way, the translation of that retort is, "That's too scary to think about so I will just ignore it and suppress the horrible truth."

Not much point in trying to infer anything from today's trading. Even though markets were open (doors of the temple of Mammon and Greed must always remain open for its worshippers) a holiday in the US and London trimmed trading to a minimum.

US dollar index lost 14.9 basis points (0.19%) to 81.089. Still trending up, could reach 83, IF it can breach its 200 DMA at 81.80.

Euro has lots further to fall. Rose 0.31% today to $1.3413, but with the ECB dropping interest rates and the market (not the Fed, who factually controls little more than their own mouth but want to make you believe they control everything) is raising interest rates in the US, euro has no reason to rise against the buck.

Yen lost 0.15% to 100.81 cents/Y100. Eventually those in charge in Japan will wreck the Japanese economy, if they just keep working at it with poisonous monetary policy.

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.